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to focus only on the less-than-stellar performing accounts. In fact, good performing accounts can become a blue print for those lesser performing insureds. It is then that a serious underwriter can share constructive ways for other insureds to improve their results. It is with this holistic approach that we hope to share what works, rather than look at only the negative side of a vessel owner’s operations. Evolving with Inland Operators At one time – a very long time ago – Continental Underwrit- ers carefully limited writing policies for inland towboat opera- tors because of their unreliability and poor track record and lack of safety management systems. But that was then; this is now. Today, Continental Underwriters is one of the most prolifi c brown water underwriters in the business. To that end, the American Waterways Organization (AWO) has had a big effect – a positive one – in the brown water sector. The SubM Towing rules promise much of the same, especially for that sector of the market not yet on board with the AWO protocols. But, safety is a given regardless of the safety management sys- tems being used. We rate accounts on a number of criteria. We are hopeful that the U.S. Coast Guard will adopt a meaningful safety management system that all serious owners can readily accept and implement. We also know that the inland towing industry has been working very hard with the Coast Guard to establish regulations that are not seen as routine, but can be used to save lives, prevent injuries and minimize the loss to vessels. Safety seems like a very simple process but when you deal with people, weather and equipment, most anything can hap- pen despite the best safety management system. Eliminate the Unknown, Mitigate the Risk We consider all elements of marine insurance risky. How- ever, insuring the unknown is always a challenge. Insuring the interests of loss of life, illness and injury where judges and juries can award huge monetary awards is very perplexing for an insurer. Professional insurers know all too well how fast a good year can turn bad with such unknowns. And, for ex- ample, the U.S. court system is all over the map, depending on where a claim is being litigated. While a close and long term relationship is critical to long term success for both the insured and for the insurer writing the policies, sometimes this isn’t possible in the beginning. Insurers usually get their information from an application. Relying exclusively on that document does not paint an accu- rate picture of an insured’s operation. At Continental, we drill down and ask peer groups what they know about an account. The input of surveyors, attorneys and other industry profes- sionals is valuable, as is the ability to compare older submis- sions with the one in hand. Underwriting is not simply pulling a rate from a rate book; it involves the keen sense of what is being presented and asking the right questions in order to be able to arrive at a decision to put a price on the table. At the end of the day, insurers do not reduce risk for clients other than by restricting coverage, which usually doesn’t work. A good way to help a serious insured improve their results is to part- ner with them in risk sharing. Without exception, insureds who opt for higher retention will make sure that they do everything possible to save their bottom line. Helping an insured under- stand risk reward will help that insured understand that insurance should be used for catastrophic losses and not as a maintenance policy. A thorough risk assessment will make that very clear. There is no one single criteria that would give an underwriter absolute assurance that the risk is acceptable. But, this starts with certifi able historical data. Too much or too little information can be equally confusing. Being old is not a disqualifi cation, but being old and neglected certainly is. www.maritimeprofessional.com | Maritime Professional | 49 34-49 Q2 MP2014.indd 49 5/16/2014 2:58:03 PM
